Triune Energy Pvt Ltd Vs DCIT (ITAT Delhi)
In regard to second charge for which penalty is levied for interest on TDS it can be observed that the ld AO in his assessment order had not mentioned a word regarding his satisfaction for proceeding with penalty proceedings u/s 271(1)(c) of the Act while passing the impugned penalty order dated 23.03.2018. The assessment order does not mention if penalty proceedings has to be for concealment of particulars of income or for furnishing inaccurate particulars of income. As a matter of fact the notice issued u/s 274 read with section 271 of the Act itself was ambiguous as it did not make it clear as to under which limb section of 271(1)(c) of the Act the notice was issued. On the other hand in the penalty order the ld AO has coined her own term “concealed income by furnishing inaccurate particulars.”
Thus ambiguity in issue of notice and findings make the impugned order of levying penalty void ab initio.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. The appeal has been preferred by the Assessee against the order dated 10.06.2019 of Ld CIT(A)-9, New Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. „FAA’) in appeal No. 10052/18-19 arising out of an appeal before it against the assessment order dated 23.03.2018 passed u/s 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred as „the Act’) by AO, ACIT, Circle 25(2), New Delhi (hereinafter referred as the Ld. AO).
2. The facts in brief are that the original return declaring total loss of Rs. 17,30,32,733/- was e-filed on 19.08.2011 which was assessed u/s 143(3) of the Act at loss of Rs. 14,26,63,801/- on 10.03.2015. The Assessee contested the said assessment order before the ld CIT(A). As the appeal of the Assessee had been partly allowed by the ld CIT(A) vide appeal No. 334/15-16 dated 18.11.2016 by allowing ground of appeal on the addition on account of deprecation on intangibles of Rs. 2,40,79,042/-. Hence, the remaining additions after the decision of the ld CIT(A) were considered for the penalty u/s 271(1)(c) which are as under:-
(i) Provision for LD charges of Rs. 27,99,953/-
(ii) Interest on TDS of Rs. 67,797/-.
3. The ld AO while passing the impugned penalty order dated 23.03.2018 observed that the Assessee has concealed income by furnishing inaccurate particulars of its income and made following disallowances in the penalty order:-
“The working of penalty leviable in accordance with provisions of section 271(l)(c) of the I.T. Act is given here-in-below:-(Amount in Rs.)
